Today Instagram launched it’s checkout facility. This feature allows grammers to purchase their favourite products, as worn by their favourite influencers all within the app.
The new system will charge sellers a not yet disclosed fee in order to offset transaction-related expenses. While the feature is still in the beta testing stage, more information will be released to us as it becomes known. It will not however change the price for consumers.
Instagram is banking (no pun intended) on the hope that the social network will provide less barriers to purchase and therefore a better return on investment for businesses.
Here is where it gets interesting for brands though, they are rumoured to be also adding the checkout feature to sponsored posts, ads that could get specifically targeted to your perfect demographic. This is the virtual equivalent of whacking someone in the face with a product that they are interested in. Very powerful stuff!
The checkout page will collect your information at the end and process your payment using paypal and all major credit cards. This means that less data will go to the merchants and more to Instagram.
Let’s wait and see how this unfolds.